How to Obtain Cash for a Real Estate Auction

Obtaining cash for a real estate auction is something you can do in a couple of different ways depending on the situation. Obtain cash for a real estate auction with help from an expert lawyer in the real estate industry in this free video clip.

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Hello, I'm Robert Howe, of The Law Firm of Robert Howe P.C., located in Brooklyn, New York. Right now, we're going to talk about how, to obtain cash for a real estate auction. My clients often ask me, how does a person buy property at a real estate auction? And I respond as follows, real estate auctions are really not for the casual real estate buyer, it's kind of a high pressured situation, you attend the auction, there are multiple bidders, the successful bidder, has to immediately put up 10 percent, if they're chosen as a successful bid, then you have to close within 30 days, 30 days doesn't allow for traditional bank financing, traditional bank financing typically takes about 90 days, from start to finish, to close on a transaction so the 30 day period that you're given, by the court and the person foreclosing on the property, really doesn't fit with traditional bank lending. So what do you have to do? Typically you should have your money lined up already, before you even go to the auction, in the event you are a successful bidder, you will need to close within 30 days. Failing to have the money setup before hand, you might want to look to bring in partners or investors, who will help you with the purchase of the property. Failing that, there are people called, hard money lenders, these are typically people, who will lend you money, but at very high interest rates and very high number of points, it becomes an expensive transaction. So if you want to buy a property at auction, you really need the money available, from the day of the auction on, this is not the type of transaction, where you would leave the auction, go to a bank, apply for a traditional loan because you do have only 30 days to close and traditional lending doesn't close within 30 days. This is, Robert Howe, I'm a attorney at the The Law Firm of Robert Howe P.C., located in Brooklyn, New York. We've just been talking about to get cash, to buy at a foreclosure auction. If you need further information, you can contact me at www.robert-howe.com. Thank you.